Target Hospitality Reports First Quarter 2025 Results with Continued Focus on Pursuing Strong Strategic Growth Pipeline
The company secured two major contracts: a multi-year Workforce Hub Contract worth $140 million through 2027 supporting critical mineral supply chain, and a 5-year $246 million Dilley Contract for U.S. government initiatives. Target redeemed all outstanding 10.75% Senior Notes, expecting annual interest savings of $19.5 million.
Financial position remains strong with $169 million in total available liquidity and a net leverage ratio of 0.1x. The company maintained its 2025 outlook with revenue between $265-285 million and Adjusted EBITDA between $47-57 million.
La società ha ottenuto due contratti importanti: un contratto pluriennale Workforce Hub del valore di 140 milioni di dollari fino al 2027 a supporto della catena di approvvigionamento di minerali critici, e un contratto quinquennale Dilley da 246 milioni di dollari per iniziative del governo USA. Target ha rimborsato tutti i Senior Notes in circolazione al 10,75%, prevedendo un risparmio annuo sugli interessi di 19,5 milioni di dollari.
La posizione finanziaria resta solida con 169 milioni di dollari di liquidità totale disponibile e un rapporto di leva finanziaria netta di 0,1x. La società ha confermato le previsioni per il 2025 con ricavi tra 265 e 285 milioni di dollari e un EBITDA rettificato tra 47 e 57 milioni di dollari.
La compañía aseguró dos contratos importantes: un contrato plurianual Workforce Hub por 140 millones de dólares hasta 2027, apoyando la cadena de suministro de minerales críticos, y un contrato Dilley de 5 años por 246 millones de dólares para iniciativas del gobierno de EE.UU. Target redimió todos los bonos Senior Notes pendientes al 10,75%, esperando un ahorro anual en intereses de 19,5 millones de dólares.
La posición financiera sigue siendo sólida con 169 millones de dólares en liquidez total disponible y una ratio de apalancamiento neto de 0,1x. La compañía mantuvo su perspectiva para 2025 con ingresos entre 265 y 285 millones de dólares y EBITDA ajustado entre 47 y 57 millones de dólares.
회사는 중요한 두 계약을 체결했습니다: 2027년까지 지속되는 1억 4,000만 달러 규모의 다년간 Workforce Hub 계약으로 핵심 광물 공급망을 지원하며, 미국 정부 이니셔티브를 위한 5년간 2억 4,600만 달러 규모의 Dilley 계약도 확보했습니다. Target은 모든 미지급 10.75% 선순위 채권을 상환하여 연간 이자 비용 1,950만 달러 절감을 기대하고 있습니다.
재무 상태는 총 1억 6,900만 달러의 가용 유동성과 0.1배의 순부채비율로 견고합니다. 회사는 2025년 전망을 유지하며 매출 2억 6,500만~2억 8,500만 달러, 조정 EBITDA 4,700만~5,700만 달러를 예상하고 있습니다.
L’entreprise a obtenu deux contrats majeurs : un contrat pluriannuel Workforce Hub d’une valeur de 140 millions de dollars jusqu’en 2027, soutenant la chaîne d'approvisionnement des minéraux critiques, et un contrat Dilley de 5 ans pour 246 millions de dollars pour des initiatives gouvernementales américaines. Target a racheté toutes les obligations Senior Notes en circulation à 10,75 %, anticipant une économie annuelle d’intérêts de 19,5 millions de dollars.
La position financière reste solide avec 169 millions de dollars de liquidités totales disponibles et un ratio d’endettement net de 0,1x. La société a maintenu ses prévisions pour 2025 avec un chiffre d’affaires compris entre 265 et 285 millions de dollars et un EBITDA ajusté entre 47 et 57 millions de dollars.
Das Unternehmen sicherte sich zwei bedeutende Verträge: einen mehrjährigen Workforce Hub Vertrag im Wert von 140 Millionen US-Dollar bis 2027 zur Unterstützung der kritischen Mineralienlieferkette sowie einen 5-Jahres-Vertrag über 246 Millionen US-Dollar mit Dilley für US-Regierungsinitiativen. Target löste alle ausstehenden 10,75% Senior Notes ein und erwartet dadurch jährliche Zinsersparnisse von 19,5 Millionen US-Dollar.
Die Finanzlage bleibt mit 169 Millionen US-Dollar an verfügbarer Liquidität und einem Nettoverschuldungsgrad von 0,1x stark. Das Unternehmen bestätigte seine Prognose für 2025 mit Umsätzen zwischen 265 und 285 Millionen US-Dollar sowie einem bereinigten EBITDA zwischen 47 und 57 Millionen US-Dollar.
- Secured new 5-year $246 million Dilley Contract supporting U.S. government initiatives
- Won multi-year Workforce Hub Contract worth $140 million through 2027
- Strong liquidity position with $169 million available and low net leverage ratio of 0.1x
- Expected annual interest expense savings of $19.5 million from Senior Notes redemption
- Revenue declined 34.5% to $69.9 million from $106.7 million in Q1 2024
- Net loss of $6.5 million compared to net income of $20.4 million in Q1 2024
- Adjusted EBITDA decreased to $21.6 million from $53.7 million year-over-year
- Average utilized beds dropped to 9,898 from 14,049, with utilization falling to 60% from 87%
Insights
Target Hospitality's Q1 2025 shows transitioning business with net loss amid contract changes; balance sheet remains strong with minimal leverage.
Target Hospitality's Q1 2025 results reflect a company in transition as it navigates significant contract changes. Revenue declined 34.5% to
The primary driver behind this performance decline was the termination of two major government contracts - the Pecos Children's Center contract (ended February 2025) and the South Texas Family Residential Center contract (ended August 2024). These losses were only partially offset by a new 5-year
Despite the earnings pressure, Target's balance sheet remains exceptionally strong with just 0.1x net leverage ratio and approximately
Their capital allocation shows investment in future growth, with
For full-year 2025, management maintained guidance of
This earnings report highlights Target's strategic pivot toward diversifying its contract portfolio and reducing reliance on specific government segments, though this transition is creating near-term financial pressure as new initiatives ramp up.
Financial and Operational Highlights
- Revenue of
$69.9 million - Net loss of
$6.5 million - Basic and diluted loss per share of
$0.07 - Adjusted EBITDA(1) of
$21.6 million - On March 25, 2025, redeemed all outstanding
10.75% Senior Secured Notes due 2025 ("Senior Notes"), maintaining financial flexibility as the Company continues pursuing strategic growth initiatives. - Approximately
$169 million - Advanced strategic diversification with multi-year workforce hub contract, expected to generate approximately
$140 million - Announced 5-year
$246 million South Texas assets inDilley, Texas , supporting criticalU.S. government initiatives ("Dilley Contract"), effective March 5, 2025.
Executive Commentary
"We delivered a strong first quarter marked by sound business fundamentals and continued momentum executing on recent contract wins. We are pleased with the pace of activity on our Workforce Hub Contract and reactivation of our
"Quarter to quarter we are committed to building and sustaining positive momentum both servicing our existing customers and pursuing growth initiatives. We remain focused on executing our strategy, which is centered on further diversifying our contract portfolio and business mix to deliver consistent results through a variety of business cycles. We remain intentionally focused on achieving these strategic objectives and maximizing value for our shareholders," concluded Mr. Archer.
Financial Results
First Quarter Summary Highlights
For the Three Months Ended ($ in '000s, except per share amounts) - | March 31, 2025 | March 31, 2024 | |||||
Revenue | $ | 69,897 | $ | 106,672 | |||
Net income (loss) | $ | (6,459) | $ | 20,363 | |||
Income (loss) per share – basic | $ | (0.07) | $ | 0.20 | |||
Income (loss) per share – diluted | $ | (0.07) | $ | 0.20 | |||
Adjusted EBITDA(1) | $ | 21,571 | $ | 53,688 | |||
Average utilized beds | 9,898 | 14,049 | |||||
Utilization | 60 | % | 87 | % | |||
Revenue was
Net income (loss) was
Adjusted EBITDA(1) was
The decreases were primarily attributable to the government segment, driven by the termination of the Pecos Children's Center Contract ("PCC Contract") effective February 21, 2025, and partially by the termination of the South Texas Family Residential Center Contract ("STFRC Contract") effective August 9, 2024. These decreases were partially offset by the Dilley Contract award effective March 5, 2025 and growth in the All Other category of operating segments attributable to the Workforce Hub Contract.
Capital Management
The Company had approximately
On March 25, 2025, the Company redeemed all
As of March 31, 2025, the Company had approximately
Business Update and Full Year 2025 Outlook
Target's premium service offering and unique value proposition, provide unmatched solutions to customers across its expansive network. Coupled with an efficient and durable operating model, these characteristics support Target's ability to navigate a variety of economic environments.
The Company's proven workforce accommodation model supports a premier customer base across multiple industries. Target's HFS – South segment continues to benefit from consistent customer demand, where its turn-key hospitality services and expansive network provide valuable solutions supporting customers labor allocation requirements.
These proven capabilities supported the multi-year
Regarding the Government segment, the 5-year
The Company believes these proven capabilities, coupled with the
Target's strong business fundamentals and durable operating model support the Company's reiterated 2025 outlook, of:
- Total revenue between
$265 $285 million - Adjusted EBITDA(1) between
$47 $57 million
Segment Results – First Quarter 2025
Government
Refer to exhibits to this earnings release for definitions and reconciliations of Non-GAAP financial measures to GAAP financial measures
For the Three Months Ended ($ in '000s) - (unaudited) | March 31, 2025 | March 31, 2024 | |||||
Revenue | $ | 25,717 | $ | 67,607 | |||
Adjusted gross profit(1) | $ | 19,178 | $ | 52,433 | |||
Revenue for the three months ended March 31, 2025, was
The decreases were primarily driven by the termination of the PCC Contract effective February 21, 2025, and partially by the termination of the STFRC Contract effective August 9, 2024. These decreases were moderately offset by the Dilley Contract award effective March 5, 2025.
Hospitality & Facilities Services - South
Refer to exhibits to this earnings release for definitions and reconciliations of Non-GAAP financial measures to GAAP financial measures
For the Three Months Ended ($ in '000s, except ADR) - (unaudited) | March 31, 2025 | March 31, 2024 | |||||
Revenue | $ | 36,068 | $ | 36,934 | |||
Adjusted gross profit(1) | $ | 11,033 | $ | 12,842 | |||
Average daily rate (ADR) | $ | 70.07 | $ | 74.89 | |||
Average utilized beds | 5,653 | 5,363 | |||||
Utilization | 76 | % | 72 | % | |||
Revenue for the three months ended March 31, 2025, was
Target continues to benefit from consistent customer demand, as its customers find added value in its premier service offering and expansive network capabilities.
All Other
Refer to exhibits to this earnings release for definitions and reconciliations of Non-GAAP financial measures to GAAP financial measures
For the Three Months Ended ($ in '000s) - (unaudited) | March 31, 2025 | March 31, 2024 | |||||
Revenue | $ | 8,112 | $ | 2,131 | |||
Adjusted gross profit(1) | $ | 1,425 | $ | (1,426) | |||
This category of operating segments consists of hospitality services revenue not included in other segments, including Target's Workforce Hospitality Solutions ("WHS") operating segment which includes the Workforce Hub Contract. Revenue for the three months ended March 31, 2025, was
The increase was primarily driven by activity associated with the Workforce Hub Contract and the Company's construction of a premier community capable of supporting up to 2,000 individuals.
Conference Call
The Company has scheduled a conference call for May 19, 2025, at 8:00 a.m. Central Time (9:00 am Eastern Time) to discuss the first quarter 2025 results.
The conference call will be available by live webcast through the Investors section of Target Hospitality's website at www.TargetHospitality.com or by connecting via phone through one of the following options:
Please utilize the Direct Phone Dial option to be immediately entered into the conference call once you are ready to connect.
Direct Phone Dial
(RapidConnect URL): https://emportal.ink/3EvFeWw
Or the traditional, operator assisted dial-in below.
Domestic: 1-800-836-8184
Please register for the webcast or dial into the conference call approximately 15 minutes prior to the scheduled start time.
About Target Hospitality
Target Hospitality is one of
Cautionary Statement Regarding Forward Looking Statements
Certain statements made in this press release (including the financial outlook contained herein) are "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words "estimates," "projected," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "should," "future," "propose" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside our control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, that may affect actual results or outcomes include: operational, economic, including inflation, political and regulatory risks; our ability to effectively compete in the specialty rental accommodations and hospitality services industry, including growing the HFS – South, Government and Workforce Hospitality Solutions segments; effective management of our communities; natural disasters and other business distributions including outbreaks of epidemic or pandemic disease; the duration of any future public health crisis, related economic repercussions and the resulting negative impact to global economic demand; the effect of changes in state building codes on marketing our buildings; changes in demand within a number of key industry end-markets and geographic regions; changes in end-market demand requirements that could lead to cancelation of contracts for convenience in the Government segment; our reliance on third party manufacturers and suppliers; failure to retain key personnel; increases in raw material and labor costs; the effect of impairment charges on our operating results; our future operating results fluctuating, failing to match performance or to meet expectations; our exposure to various possible claims and the potential inadequacy of our insurance; unanticipated changes in our tax obligations; our obligations under various laws and regulations; the effect of litigation, judgments, orders, regulatory or customer bankruptcy proceedings on our business; our ability to successfully acquire and integrate new operations; global or local economic and political movements, including any changes in policy under the Trump administration or any future administration; federal government budgeting and appropriations; our ability to effectively manage our credit risk and collect on our accounts receivable; our ability to fulfill Target Hospitality's public company obligations; any failure of our management information systems; and our ability to meet our debt service requirements and obligations. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
(1) Non-GAAP Financial Measures
This press release contains historical non-GAAP financial measures including Adjusted gross profit, EBITDA, and Adjusted EBITDA, which are measurements not calculated in accordance with US GAAP, in the discussion of our financial results because they are key metrics used by management to assess financial performance. Our business is capital-intensive, and these additional metrics allow management to further evaluate our operating performance. Reconciliations of these measures to the most directly comparable GAAP financial measures are contained herein. To the extent required, statements disclosing the definitions, utility and purposes of these measures are also set forth herein.
This press release also contains a forward-looking non-GAAP financial measure Adjusted EBITDA. Reconciliations of this forward-looking measure to its most directly comparable GAAP financial measures is unavailable to Target Hospitality without unreasonable effort. We cannot provide a reconciliation of forward-looking Adjusted EBITDA to GAAP financial measures because certain items required for such reconciliation are outside of our control and/or cannot be reasonably predicted, such as the provision for income taxes. Preparation of such reconciliation would require a forward-looking balance sheet, statement of income and statement of cash flow, prepared in accordance with GAAP, and such forward-looking financial statements are unavailable to us without unreasonable effort. Although we provide a minimum of Adjusted EBITDA that we believe will be achieved, we cannot accurately predict all the components of the Adjusted EBITDA calculation. Target Hospitality provides an Adjusted EBITDA outlook because we believe that this measure, when viewed with our results under GAAP, provide useful information for the reasons noted below.
Definitions:
Target Hospitality defines Adjusted gross profit, as Gross profit plus depreciation of specialty rental assets, loss on impairment, and certain severance costs.
Target Hospitality defines EBITDA as net income (loss) before interest expense and loss on extinguishment of debt, income tax expense (benefit), depreciation of specialty rental assets, and other depreciation and amortization. Adjusted EBITDA reflects the following further adjustments to EBITDA to exclude certain non-cash items and the effect of what management considers transactions or events not related to its core business operations:
- Other (income) expense, net: Other (income) expense, net includes miscellaneous cash receipts, gains and losses on disposals of property, plant, and equipment, and other immaterial expenses and non-cash items.
- Transaction expenses: Target Hospitality incurred legal, advisory fees, and other costs associated with certain transactions during 2024, including costs related to the evaluation of the offer from Arrow Holdings S.a.r.l. ("Arrow"), an affiliate of TDR Capital LLP ("TDR"), to acquire all of the outstanding common stock of the Company not owned by any of Arrow, any investment fund managed by TDR or any of their respective affiliates (the "Unaffiliated Shares"), for cash consideration of
$10.80 - Stock-based compensation: Charges associated with stock-based compensation expense, which has been, and will continue to be for the foreseeable future, a significant recurring expense in our business and an important part of our compensation strategy.
- Change in fair value of warrant liabilities: Non-cash change in estimated fair value of warrant liabilities.
- Other adjustments: System implementation costs, including non-cash amortization of capitalized system implementation costs, business development related costs, accounting standard implementation costs and certain severance costs.
Utility and Purposes:
EBITDA reflects Net income (loss) excluding the impact of interest expense and loss on extinguishment of debt, provision for income taxes, depreciation, and amortization. We believe that EBITDA is a meaningful indicator of operating performance because we use it to measure our ability to service debt, fund capital expenditures, and expand our business. We also use EBITDA, as do analysts, lenders, investors, and others, to evaluate companies because it excludes certain items that can vary widely across different industries or among companies within the same industry. For example, interest expense can be dependent on a company's capital structure, debt levels, and credit ratings. Accordingly, the impact of interest expense on earnings can vary significantly among companies. The tax positions of companies can also vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the jurisdictions in which they operate. As a result, effective tax rates and provision for income taxes can vary considerably among companies. EBITDA also excludes depreciation and amortization expense because companies utilize productive assets of different ages and use different methods of both acquiring and depreciating productive assets. These differences can result in considerable variability in the relative costs of productive assets and the depreciation and amortization expense among companies.
Target Hospitality also believes that Adjusted EBITDA is a meaningful indicator of operating performance. Our Adjusted EBITDA reflects adjustments to exclude the effects of additional items, including certain items, that are not reflective of the ongoing operating results of Target Hospitality. In addition, to derive Adjusted EBITDA, we exclude gains or losses on the sale and disposal of depreciable assets and impairment losses because including them in EBITDA is inconsistent with reporting the ongoing performance of our remaining assets. Additionally, the gain or loss on sale and disposal of depreciable assets and impairment losses represents either accelerated depreciation or excess depreciation in previous periods, and depreciation is excluded from EBITDA.
Adjusted gross profit, EBITDA and Adjusted EBITDA are not measurements of Target Hospitality's financial performance under GAAP and should not be considered as alternatives to Gross profit, Net income, or other performance measures derived in accordance with GAAP, or as alternatives to Cash flow from operating activities as measures of Target Hospitality's liquidity. Adjusted gross profit, EBITDA and Adjusted EBITDA should not be considered as discretionary cash available to Target Hospitality to reinvest in the growth of our business or as measures of cash that is available to it to meet our obligations. In addition, these non-GAAP measures may not be comparable to similarly titled measures of other companies. Target Hospitality's management believes that Adjusted gross profit, EBITDA and Adjusted EBITDA provides useful information to investors about Target Hospitality and its financial condition and results of operations for the following reasons: (i) they are among the measures used by Target Hospitality's management team to evaluate its operating performance; (ii) they are among the measures used by Target Hospitality's management team to make day-to-day operating decisions, (iii) they are frequently used by securities analysts, investors and other interested parties as a common performance measure to compare results across companies in Target Hospitality's industry.
Investor Contact:
Mark Schuck
(832) 702 – 8009
ir@targethospitality.com
Exhibit 1 | ||||||
Target Hospitality Corp. | ||||||
Consolidated Statements of Comprehensive Income (loss) | ||||||
($ in thousands, except per share amounts) | ||||||
Three Months Ended | ||||||
March 31, | ||||||
2025 | 2024 | |||||
(unaudited) | (unaudited) | |||||
Revenue: | ||||||
Services income | $ | 50,107 | $ | 72,398 | ||
Specialty rental income | 14,995 | 34,274 | ||||
Construction fee income | 4,795 | — | ||||
Total revenue | 69,897 | 106,672 | ||||
Costs: | ||||||
Services | 35,768 | 36,915 | ||||
Specialty rental | 2,493 | 5,908 | ||||
Depreciation of specialty rental assets | 13,672 | 14,781 | ||||
Gross profit | 17,964 | 49,068 | ||||
Selling, general and administrative | 14,805 | 14,855 | ||||
Other depreciation and amortization | 3,973 | 3,885 | ||||
Other expense (income), net | 262 | (110) | ||||
Operating income (loss) | (1,076) | 30,438 | ||||
Loss on extinguishment of debt | 2,370 | — | ||||
Interest expense, net | 4,329 | 4,587 | ||||
Change in fair value of warrant liabilities | — | (675) | ||||
Income (loss) before income tax | (7,775) | 26,526 | ||||
Income tax expense (benefit) | (1,316) | 6,143 | ||||
Net income (loss) | (6,459) | 20,383 | ||||
Less: Net income attributable to the noncontrolling interest | 2 | — | ||||
Net income (loss) attributable to Target Hospitality Corp. common stockholders | (6,461) | 20,383 | ||||
Other comprehensive loss | ||||||
Foreign currency translation | (4) | (20) | ||||
Comprehensive income (loss) | $ | (6,463) | $ | 20,363 | ||
Weighted average number shares outstanding - basic | 99,111,940 | 100,657,706 | ||||
Weighted average number shares outstanding - diluted | 99,111,940 | 102,362,542 | ||||
Net income (loss) per share attributable to Target Hospitality Corp. | $ | (0.07) | $ | 0.20 | ||
Net income (loss) per share attributable to Target Hospitality Corp. | $ | (0.07) | $ | 0.20 | ||
Exhibit 2 | ||||||
Target Hospitality Corp. | ||||||
Condensed Consolidated Balance Sheet Data | ||||||
($ in thousands) | ||||||
(unaudited) | ||||||
March 31, | December 31, | |||||
2025 | 2024 | |||||
Assets | ||||||
Cash and cash equivalents | $ | 34,468 | $ | 190,668 | ||
Accounts receivable, less allowance for credit losses | 56,949 | 49,342 | ||||
Other current assets | 8,172 | 9,326 | ||||
Total current assets | 99,589 | 249,336 | ||||
Specialty rental assets, net | 326,129 | 320,852 | ||||
Goodwill and other intangibles, net | 90,482 | 93,845 | ||||
Other non-current assets | 46,320 | 61,741 | ||||
Total assets | $ | 562,520 | $ | 725,774 | ||
Liabilities | ||||||
Accounts payable | $ | 23,126 | $ | 16,187 | ||
Deferred revenue and customer deposits | 1,010 | 699 | ||||
Current portion of long-term debt, net | — | 180,328 | ||||
Other current liabilities | 26,376 | 36,190 | ||||
Total current liabilities | 50,512 | 233,404 | ||||
Long-term debt, net | 40,900 | — | ||||
Other non-current liabilities | 55,840 | 71,280 | ||||
Total liabilities | 147,252 | 304,684 | ||||
Stockholders' equity | ||||||
Common stock and other stockholders' equity | 89,396 | 88,701 | ||||
Accumulated earnings | 325,919 | 332,380 | ||||
Total stockholders' equity attributable to Target Hospitality Corp. | 415,315 | 421,081 | ||||
Noncontrolling interest in consolidated subsidiaries | (47) | 9 | ||||
Total stockholders' equity | 415,268 | 421,090 | ||||
Total liabilities and stockholders' equity | $ | 562,520 | $ | 725,774 | ||
Exhibit 3 | ||||||
Target Hospitality Corp. | ||||||
Condensed Consolidated Cash Flow Data | ||||||
($ in thousands) | ||||||
(unaudited) | ||||||
Three Months Ended | ||||||
March 31, | ||||||
2025 | 2024 | |||||
Cash and cash equivalents - beginning of period | $ | 190,668 | $ | 103,929 | ||
Cash flows from operating activities | ||||||
Net income (loss) | (6,459) | 20,383 | ||||
Adjustments: | ||||||
Depreciation | 14,282 | 15,303 | ||||
Amortization of intangible assets | 3,363 | 3,363 | ||||
Other non-cash items | 5,388 | 4,773 | ||||
Changes in operating assets and liabilities | (12,635) | 6,769 | ||||
Net cash provided by operating activities | $ | 3,939 | $ | 50,591 | ||
Cash flows from investing activities | ||||||
Purchases of specialty rental assets | (16,590) | (8,825) | ||||
Other investing activities | (615) | (93) | ||||
Net cash used in investing activities | $ | (17,205) | $ | (8,918) | ||
Cash flows from financing activities | ||||||
Other financing activities | (142,937) | (21,296) | ||||
Net cash used in financing activities | $ | (142,937) | $ | (21,296) | ||
Effect of exchange rate changes on cash and cash equivalents | 3 | (4) | ||||
Change in cash and cash equivalents | (156,200) | 20,373 | ||||
Cash and cash equivalents - end of period | $ | 34,468 | $ | 124,302 | ||
Exhibit 4 | |||||
Target Hospitality Corp. | |||||
Reconciliation of Gross profit to Adjusted gross profit | |||||
($ in thousands) | |||||
(unaudited) | |||||
For the Three Months Ended | |||||
March 31, | |||||
2025 | 2024 | ||||
Gross Profit | $ | 17,964 | $ | 49,068 | |
Adjustments: | |||||
Depreciation of specialty rental assets | 13,672 | 14,781 | |||
Adjusted gross profit | $ | 31,636 | $ | 63,849 | |
Exhibit 5 | |||||
Target Hospitality Corp. | |||||
Reconciliation of Net income (loss) to EBITDA and Adjusted EBITDA | |||||
($ in thousands) | |||||
(unaudited) | |||||
For the Three Months Ended | |||||
March 31, | |||||
2025 | 2024 | ||||
Net income (loss) | $ | (6,459) | $ | 20,383 | |
Income tax expense (benefit) | (1,316) | 6,143 | |||
Interest expense, net | 4,329 | 4,587 | |||
Loss on extinguishment of debt | 2,370 | — | |||
Other depreciation and amortization | 3,973 | 3,885 | |||
Depreciation of specialty rental assets | 13,672 | 14,781 | |||
EBITDA | $ | 16,569 | $ | 49,779 | |
Adjustments | |||||
Other expense (income), net | 262 | (110) | |||
Transaction expenses | 2,830 | 240 | |||
Stock-based compensation | 1,716 | 2,748 | |||
Change in fair value of warrant liabilities | — | (675) | |||
Other adjustments | 194 | 1,706 | |||
Adjusted EBITDA | $ | 21,571 | $ | 53,688 | |
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SOURCE Target Hospitality
FAQ
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